Spotify on Tuesday said third-quarter profit margins were squeezed by slow advertising growth, fanning concerns about the weak global economy’s effect on digital advertising. Spotify shares slid 4% in after-hours trading, stung by sector-wide weakness after Google parent Alphabet missed market estimates for quarterly revenue as advertisers cut spending. Spotify, whose stock has fallen 58.5% this year, said third-quarter margins were less than it had expected, blaming “some softness in advertising,” currency fluctuations and retroactive royalty payments to songwriters and music publishers. “This is an early indicator of the concerns businesses are having about the economy,” Spotify CEO Daniel Ek told Reuters. “We’re not concerned long term, but it’s definitely impacting us in short term, and it contributed to the gross margin hit that we had this quarter, too.” The number of monthly active users rose to 456 million in the third quarter, an addition of 23 million users in three months that beat Spotify’s guidance and analysts’ forecasts of 448.6 million. Premium subscribers, who account for most of the company’s revenue, grew 13% to 195 million, topping analyst estimates of 194 million. Spotify’s ad-supported income grew 19% in the quarter to 385 million euros ($383.7 million), with double-digit growth across all regions except Europe, where Spotify said it saw the impact of challenging economic conditions in the region.